World Bank leads $6.75 billion multilateral financing for Istanbul rail crossing project

The World Bank has approved a $2 billion loan for the Istanbul North Rail Crossing Project, a 127-kilometre electrified railway that will increase freight capacity across the Bosphorus from 3 million to 50 million tons annually. Six multilateral development banks are coordinating $6.75 billion in financing for the $8.3 billion project.

The World Bank has approved a $2 billion loan for the Istanbul North Rail Crossing Project, a transformative railway infrastructure investment that will provide a new overland rail crossing of the Bosphorus, according to an official announcement.

The approval leads a coordinated financing effort by six multilateral development banks to provide $6.75 billion for the project, with total estimated costs of approximately $8.3 billion. The project will construct a 127-kilometre electrified, high-capacity railway line using the rail-ready Yavuz Sultan Selim Bridge, bypassing the Istanbul metropolitan area.

The alignment, approximately half of which will run through tunnels, reduces exposure to extreme heat, flooding, and wildfires. The project connects Istanbul's two airports to each other and to the national rail network, and serves the Trans-Caspian, Türkiye-EU, and Iraq Development Road corridors. This development matters for regional trade and logistics, where rail bottlenecks at the Bosphorus currently constrain capacity.

Freight capacity across the strait is expected to rise from approximately 3 million tons annually to up to 50 million tons once operational, a fifteen-fold increase. The project supports Türkiye's goal of shifting freight from road to rail and is expected to generate up to 414,000 jobs. For the transport and logistics industry, the project creates opportunities for private sector investment in rail services and intermodal facilities.

Stakeholders including freight operators, manufacturers, and agricultural exporters stand to benefit from reduced transit times and improved reliability. The project also reinforces Türkiye's position as a logistics hub connecting Europe, Asia, and the Middle East.